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HomeMy WebLinkAbout0031 E3orrower and I.ender covenant aod agree as followa: ' 1. Payment ot Principal and Interest. Borrower ehall promptly pay when due the principal of and inte~est on the indebtedneae evidenced by the Note, prepayment and latecharges as pmvided in the Note, and the principal otund intereston any ~ture Adve?ncea aecured by thie Mortgage. 2. ~de for T~ea and Insurance. Subject to spplicable law or to a written wai~~er by I.ender, f3orrower ahall puy to I.ender on the day monthly inatallmenta otpri~cipal and intereat are payable unde~ the Note, until the Note ie paid in full, a eum (hernin "Atinds") equal to one twelfth of the yearly taxea and assesaments which may altain priority over this Mortgage, and ground renta on the Property, if any, plua on~ twelRh of yearly premium inatallments for hazard insurance, pl'us onetwelfth ofyearly premium inataliments for mortgage ineurance, iEany, all as reasonably estimated initially and from time to time by l.ender on the basie of asaesements And bills and reasonable estimatea thereof. The ~nda shall be held in an institution thc deposita or accounte of which are inaured or guaranteed by a Federal or State agency (including L.ender if Lender ia euch an inetitution). I.ender ehall apply the Funda to pay eaid te:es, asseec~menta, inaurance premiums and Rround renta. Lender mqy not charge for eo holding and applying the ~nde, analyzing said account, or verifying and compiling said aseesamenfs and bills, unlese Lender paya Borrowe~ intereat on the Funda and applicable law permita I.ender to make auch a charge. Borrower and [.ender may agree in writing at the time of execution of thie Mortgage that intereat on the ~nde ahall be paid to Borrower, and unlesa such agreement is made or applicable law requirea auch interest to be paid, [.ender ahall not be required to pay Borrower any internet or earninga on the ~nds. L.ender shall give to Borrower, without charge. an annual accounting of the Funde ahowing credits and debite to the Funda and the purpose for which each debit to the Funds was made. The Funda are pledged as additional security for the aums aecured by this Mortgage. ~ If the amount of the I~Lnde held by I.ender, together with the future monthly inetalimente uf Funds payable prior to the due dates of tuxes, aeaeeamenta, inaurance prnmiume and ground rents, ahall exc~red the amount requind to pay said taxes, asaessments, inaurance prnmiuma and ground rente as they fall due, euch eacesa ehaU be, at Borrower'e option, either prompdy repaid to Borrower or credited to Borrower on monthly installmente of ~nde. If the amount of the Funda held by I.ender shall not be sufficient to pay ta:ea, aseesemente, inaurance premiuma and ground renta as they fall due, Borrower ehall pay to I.ender any amount necessary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Borrower requeating payment thereof. Upon payment in tull of all sums eecured by this Mortgage, Lender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, I.ender ahall apply, no later than immediately prior ~ to the sale of the Property or its aoquiaition by Lender, any ~nds held by Lender at the time of application as a credit againat the sums aecured by this Mortgage. , 3. Application of Paymente. Unleas applicable law providea otherwise, all payments received by Lender under the Note and . paragrapha 1 and 2 hereof ehall be applied by l.ender fitst in payment of amounts payable to Lender by Bonower under paragraph 2 hereof, then to internst payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liena. Borrowerahall pay aU taxes, asaeasments and other chargea, fines nnd impositiona attributahle W the Property which m ay attain a ptiority over this Mortgage, and leasehold paymenta or ground tents, if nny, in the manner provided under paraqraph 2 hereof or, if not paid in such manner, by Eiorrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Ixnder ail noticea of amounts due under thia paragtaph, and in the event Borrower shall make payment directly, Rormwer shall promptly furnish to l.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which h~s priority over this Alortgage; pmvided, that Borrower shall not be required to discharge any such lien so long as E3orrower shall agree in writinq to the pay ment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, urdefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Iasurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Property insured ngainat loss by fire, hazards included within the term "eatended coverage," and auch other hazarda as Lender may require and in such amounts and forsuch periods as Lender may rEquiue; provided, that Lender ahall not mquire such rnverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ie the greater. The insurance carrier providing the insuranrn shall be chosen hy Borrower subject to approval by I.ender, provideci, that such approval . ,hall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paraRraph 'L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier, All inaurance policiea and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptabie to Lender. l,ender shall have the right to hold the policiea and renewala thereof, and Borrower shall promptly furnish to i.ender all rnnewal noticea and all receipta of paid prnMiuma. In the event of loss, Bomower shall giveprompt notice to the insurancz carrier and Lender. Lender may make proof of loas if not made promptly by Borrower. Unleae I.ender and Boaower otherwise agree in writing, inaurance proceeda shall be applied to restoraiion or repair of the Property damaged, provided each restoration or repair is economically feseible and the security of this Mortgage ia not thereby impaired_ If such restoration or repair ie not economically feaaible or if the security of this Mortgage would be impaired, the insurance procreds sha11 be applied j to the suma secured by this Mortgage, with the exceas, if any~ paid to Borrower. Ifthe Property is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the ineurance carrier ofiera to settle a claim for E inaurance benefita, Lender ie authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the aums eecured by this Mortgage. ~ c Unlesa Lender and Bonower otherwise agree in writing, any auch application of proceeda to principal shall noi extend or postpone the due ` date of the monthly installmente referred to in paragraphs 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 ; hereof the Property ie acquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds ~ thereof reeulting from damage to Property priot to the sale or acquiaition ahall pass to Lender to the eztent of the auma secured by this ~ Mortgage immediately prior to auch sale or aoquieition. t 6. Preservation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developmente. Borrower shatl keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the • provisiona of any lease if thie Mortgage ie on a leasehold. If this Mortgage ie on a unit in a condominium or a planned unit development, ; F3orrower shall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit develop~ent, the by-laws and regulationa of the rnndominium or planned unit development, and rnnstituent dceuments. If a ' condominium or planned unit development rider is executed by Bonower and recorded together with this Mortgage, the oovenants and i ;~greements of such rider shall be incorporated into and shall amend and aupplement the covenants and agreements of this Mortgage as if the rider were a parf~,hereof. ~ 7. Protection of I.ender'e 3ecurity. If Borrower faile to perform the covenante and agreemente oontained in thie Mortgage, or if eny ~ action or proceeding ie commenced which materially affecte Lender'a intereet in the Property, including, but not limited to, eminent domain, = ineolvency, code enforcement, or arrangementa or proceedinga involving a bankrupt or decedent, then Lend~r at Lender'e option,upon notice to Borrower may mal~e euch appearancee, diaburee euch aums and take euch action as ie neceaeary' to protect Lender's intereet, including, but not limited to, diebureement of reseonable attorney e fees and entry upon the Property to make repairs. If Lender required - mortgage ineurance ae a rnndition of making the loan eecared by thia Mortgage, Borrower ahall pay the premiums required to maintain ' such ineurence in effect until euch time ae the requirement for euch ineurance terminatee in ~ccordance arith Borrower e and Lender's written agreement or applicable Law_ Borrower ehall pay the amount of all mortgage insurance premiumB in the manner pmvided under paragraph 2 hereof. ' My amoante diebursed by Lender perauant to this paragraph T, with intereet thereon, ahall beoome additional indebtedneae of Rorrower eecured by thie Mortgage. Unleae Borrower and L.ender agree to other terms of payment, euch amounte ehall be payable upon = notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of disburaement at the rate payable from time to time on outetandiag principal under the Note unleea payment of ~interest at auch rate would be contrary to applicable law, in which event euch amounte ehall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in thia paragraph 7, shall ~ require Lender to incur any expenae or take any action hernunder. z ~ } r ~ •4Y ~O~ V ~ ~1 ~ ~ , _ = r~ _ _ _ . :.~w~